The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-09-17
COTTON INSURANCE.
Sweeping Reduction OF Rates at st.
Louis, to the Disgust Of Agents.
Comparison Of storage and RaciIi-
ties for Fighting Fire Between
81. Louis, Memphis and
New Orleans.

81. Louis Is still ambitious OF hold.
Ing her own as q cotton market against
Memphis. The st. Louis Globe. DEM
Graf Of Thursday has the following:
1.-THE cotton men were elated and the
insurance men dirgruntled yesterday
over the action taken by the Board Of
Underwriters on Tuesday, reducing
the rate OF insurance from 1.75 to 1.5.
The result, It is claimed, will be that a
number OF the local insurance men
will refuse to consider cotton risks,
though others will continue to write
them. Several hundred thousand dol
lars were placed last year at 5 In out
side companies, but the PARTIES en-.
gagged In cutting them will not now,
II Is claimed, even meet the rate. The
Board Of Underwriters was prevailed
upon to reduce the rate by tho repre-
sentatiops OF the cotton men that cot
ton would not come hele unless with
very low rates, and the declaration Of
one OF the largest fscton that he
would not bnDg snother pound
here unless assured q rate
of l.5. Now that the reduction
has been granted, however, even
though some Of the board companies
will refuse to accept 1t, the effort
should be to bring more cotton here,
particularly % Memphis and New Or
leans are very much agltated over
rates, which have been pushed up on
them to o remarkable extent. In
Memphis last year the cotton risks
were largely written outside, mainly
from st. Louis, at q heavy cut on the
board rates then prevailing, which
we're then 2.25. Tho underwriters
re,allated recently by advancing the
board rate 10 3.5 on warehouses de.
tached from congresses and'6 fat on
congresses, and made the insurance
cooperative; that Ia, II the insurance
was not full, the insured, In case OF
loss, were required 10 make up their
proportion Ct the insurance. This nc.
ton WAS Induced by q $500, 900 loss
last year, az we'll as TO force the cotton
men TO abandon onhide insurance
and accept only board companies,
The information here 10 that the New
Orleans rate IL on tbs same baais, and
that the New Orleans and Memphis
boards have q compac. to uphold the
high rates 20 q means Of compelling
the rec ignition Of their supremacy.
III outside insurance not aufficlent
TO answer demands, and the report is
here that rather than accept the dicta.
ton oftle Board Il Undel writers the
cotton men are now planning 10 Or
eanise cir own insurance, one large
compress intereet agreeing to deposit
100000 IN bonds In such scheme.
The 81. Louis insurance men who re-
fuss 10 sccept the 10 rate made by
Their board ray II is ridiculous 10
lower tie rate here with such fight
and such rates as exist in Memphis
and New Orleans. They say that
Memphis should have lower rate on
account Of the fire ca iipment and the
arrangement Of the property. Here
the regular City Fire Department. is
relied upon. while the warehouses and
congresses have basements, In which
the cotton Is oiled In tiers Of two or
three bales. In Memphis the ware
houses snd congresses are one s.ory,
the floors lad fiat, with no air
chambers underneath, and the
cotton Ia piled on end, tbs rule pro-
the making Of q double tier.
There the compress companies also
have their own fire engine and do
and special hose attach.
ments and ciStorns. The insurance
men here say that II Is only because
they have been very lucky here that
they have had no lossee, 90 with ths
deem Easements and TERED cotton, II
q IRE once started II would simply
have TO be allowed 10 burn out. The
boards new ratio Of Is, however, will
probably have TO stand on this side Of
the river, the eaet side rate remaining
LIS; aud the probabilities are, all OF
the agents will, sooner or later, come
In snd do business